Author's Instructions
Carry traders borrow a currency with a low interest rate and invest it in higher-yielding markets (e.g., bonds, gold, stocks, etc.).
This strategy primarily applies to low-interest-rate currencies (e.g., the Swiss franc and yen). Additionally, the capital flows of carry traders vary depending on market sentiment, risk appetite, and risk aversion.
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Author's Instructions
Carry traders borrow a currency with a low interest rate and invest it in higher-yielding markets (e.g., bonds, gold, stocks, etc.).
This strategy primarily applies to low-interest-rate currencies (e.g., the Swiss franc and yen). Additionally, the capital flows of carry traders vary depending on market sentiment, risk appetite, and risk aversion.
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